Adecoagro S.a. · NYSE:AGRO
Adecoagro — Q2 2024 Earnings Presentation
19 slides from Adecoagro's earnings presentation, August 2024
Slide 1: Adecoagro 2nd Quarter 2024 Earnings Webcast
ADECOAGRO 2ND QUARTER 2024 EARNINGS WEBCAST
Slide 2: Disclaimer
DISCLAIMER This press release contains forward-looking statements that are based on our current expectations, assumptions, estimates and projections about us and our industry. These forward-looking statements can be identified by words or phrases such as “anticipate,” “forecast”, “believe,” “continu
Slide 3: Adecoagro 2Q24 Key Takeaways
ADECOAGRO 2Q24 KEY TAKEAWAYS Distributed beyond the minimum (+$16 million). To continue repurchasing shares during 2H24. SE&E: expansion planting activities = good cane availability Rice: Asset consolidation = relevant player in the region Crops: Yield recovery but lower international prices Mariano
Slide 4: Consolidated Financial Highlights
CONSOLIDATED FINANCIAL HIGHLIGHTS Gross Revenues Adjusted EBITDA 2Q24 Dairy 2Q24 $398 million 17% $140 million 3%(1) Crops (2%)(1) 11% Sugar, Sugar, Ethanol & Ethanol & Rice Energy Energy Rice 18% 46% 74% 8% Dairy 7% Crops 19% Gross Revenues Adjusted EBITDA 6M24 6M24 Dairy $651 million $230 million
Slide 5: Consolidated Financial Highlights
CONSOLIDATED FINANCIAL HIGHLIGHTS Gross Sales (US$ million) Adjusted EBITDA (US$ million) $ 1,442 $ 1,352 $477 $437 $433 $ 1,098 2% $342 $ 892 $305 $ 822 631 722 335 396 $226 $230 $ 654 $ 651 374 562 254 253 532 411 287 288 194 159 721 720 536 107 124 83 103 82 360 411 368 363 72 43 -20 -19 -22 -24
Slide 6: Sugar, Ethanol & Energy Business
SUGAR, ETHANOL & ENERGY BUSINESS
Slide 7: Sugar, Ethanol and Energy Business Operational Performance
SUGAR, ETHANOL AND ENERGY BUSINESS OPERATIONAL PERFORMANCE Sugarcane milled Yield TRS per ton (‘000 Tons) (Tons/Hectare) (Kg/Ton) 21% (1%) 1% 6,148 (3%) 1% 78 77 76 126 127 10% 5,078 74 122 124 3,981 3,606 2Q23 2Q24 6M23 6M24 2Q23 2Q24 6M23 6M24 2Q23 2Q24 6M23 6M24 Sugar production Ethanol productio
Slide 8: Sugar, Ethanol and Energy Business Net Sales by Product
SUGAR, ETHANOL AND ENERGY BUSINESS NET SALES BY PRODUCT 2Q24 Net Revenues Breakdown Sugar Sales Volume Ethanol Sales Volume (Tons) Anhydrous (M3) Ethanol 23.0 22.1 21.7 613 14% Hydrous (12%) (2%) 624 (26%) (27%) (*)Does not consider Ohter Operating Income 20.4 460 445 Ethanol 25% 2% $172 34% 316,711
Slide 9: Sugar, Ethanol and Energy Business Adjusted EBITDA
SUGAR, ETHANOL AND ENERGY BUSINESS ADJUSTED EBITDA Adjusted EBITDA Quarterly Adjusted EBITDA Annual (US$ Thousand) (US$ Thousand) 69% (16%) 63% (2%) 62% 58% 193,531 (18%) (9%) 158,741 116,843 106,886 2Q23 2Q24 6M23 6M24 Adjusted EBITDA Margin Adjusted EBITDA Margin 9
Slide 10: Sugar, Ethanol and Energy Business Outlook
SUGAR, ETHANOL AND ENERGY BUSINESS OUTLOOK Good sugarcane availability = Higher expected crushing volume Sugar: Expected upside in prices versus spot level Hedged ~70% of our annual sugar production at ~23cts/lb Ethanol: Price recovery and room to continue increasing 10
Slide 11: Farming Business
FARMING BUSINESS 11
Slide 12: Farming Business 2023/24 Harvest Season & Dairy Performance
FARMING BUSINESS 2023/24 HARVEST SEASON & DAIRY PERFORMANCE 2023/24 Harvest progress as of July 26, 2024. 7% Unharvested Area Harvested area 64,753 ha 53,261 ha 28,142 ha 10,832 ha harvested harvested harvested harvested 2% 100% 93% 100% 100% 273,905 ha Soybean 1st Corn 1st Wheat Sunflower 2.8 tn/ha
Slide 13: Farming Business Financial Performance
FARMING BUSINESS FINANCIAL PERFORMANCE Farming (US$ Thousand) 91% 81,806 55% 42,868 37,792 24,346 2Q23 2Q24 6M23 6M24 Crops(*) Rice(*) Dairy (US$ Thousand) (US$ Thousand) (US$ Thousand) 57% 43,969 8% 28,078 20,263 17,574 (20%) 9% 16,300 15,481 13,971 11,127 11,184 10,178 197 (1,510) 2Q23 2Q24 6M23 6
Slide 14: Capital Allocation
CAPITAL ALLOCATION 14
Slide 15: Capital Allocation: Shareholder Distribution
CAPITAL ALLOCATION SHAREHOLDER Distribution Policy(1): Minimum distribution of 40% of the cash generated during DISTRIBUTION the previous year, via a combination of cash dividends and share repurchase. Distribution Update (US$ Millions) 4.9% AGRO’s equity $ 175.9 40% Minimum as per Policy $ 16.1 $ 3
Slide 16: Capital Allocation: Net Debt Evolution
CAPITAL ALLOCATION Net Debt Evolution (US$ millions) (26%) 900 830 852 3.0x DEBT 800 707 2.5x 700 639 632 600 2.0x 503 500 1.9x 1.9x 1.5x 400 1.5x 300 1.3x 1.3x 1.0x 1.1x 200 0.5x 100 0 0.0x 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 Net Debt Net Debt/Adj. EBITDA LTM Debt Structure Debt Currency Breakdown Short
Slide 17: Capital Allocation: Expansion Capex
CAPITAL ALLOCATION EXPANSION Sugarcane Expansion planting CAPEX in Mato Grosso do Sul Investments in our Biogas unit Industrial upgrades in our Agricultural Machinery for our in Ivinhema mill Dairy Processing Facilities Rice Operations 17
Slide 18: Q&A Session
Q&A SESSION 18
Slide 19: Thank You!
THANK YOU! Website: ir.adecoagro.com Emilio Gnecco - CFO Victoria Cabello - IRO Investor Relations Department egnecco@adecoagro.com vcabello@adecoagro.com ir@adecoagro.com